China Is a Price-Sensitive on Sunflower Meal Import
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The planting area of Oil-use Sunflower seeds in China is limited, mainly concentrated in Xinjiang, Inner Mongolia, and other regions. Domestic Sunflower Oil is produced and sold in the main producing areas, which is difficult to meet market demand and mainly depends on imports. Dependence is high. At this stage, the domestic market belongs to the traditional off-season, and the market demand is relatively weak.
As of May 4, the national average market price of imported Sunflower Meal was 2,740 yuan/ton (), an increase of 17 yuan/ton from last week. During the May Day holiday, there was little overall change in imported Sunflower seed Meal, and the market purchases and sales were light. Some importers quoted high prices and reported low prices, and the purchase of ships in the later period decreased, which supported the attitude of importers to hold up prices. With the increase in the arrival of Brazilian soybeans to Hong Kong and the increase in the operating rate of Oil plants, the supply of soybean Meal in the market will increase, affecting the market price of other Meal products.
Feed companies can reduce the amount of imported Sunflower Meal by increasing the amount of soybean Meal. The demand for Sunflower Meals is limited. Basically, the price will determine how much to use. Since 2018, Chinese import of Sunflower Meal has increased significantly, from 390,000 tons to 2.33 million tons, most of which came from Ukraine. There is a significant seasonality in the import of Sunflower Meal, and the import volume in the fourth quarter increased significantly.
In 2022, China’s Sunflower Oil import volume will be 600,000 tons, a year-on-year decrease of 53%. In the first half of the year, affected by the conflict between Russia and Ukraine, Sunflower Oil imports have almost stagnated. With the opening of the Black Sea grain channel, the Sunflower Oil trade has gradually resumed, but supply-side uncertainties still exist. Sunflower Oil stocks are rising, consumption competes with Corn Oil, and the terminal chooses Oil species with high-cost performance.
As of March 10, South China’s Sunflower Meal inventory was 148,000 tons. It is expected that an average of 150,000-180,000 tons of Sunflower Meal and 130,000-170,000 tons of rapeseed Meal will arrive in Hong Kong every month from March to April.
Overview of Chinese Sunflower Oil Imports
As per the AgFlow data, China’s total Sunflower Meal import volume hit 0.94 million tons in January – May 2023. Ukraine (0.2 million tons), Russia (63,525 tons), and Bulgaria (45,000 tons) were crucial suppliers in April – May.
According to China Customs import data statistics, the import volume of Sunflower Oil in March 2023 was 171,900 tons, with a value of 231,173,431 US dollars, an increase of 84,300 tons compared with February, a month-on-month increase of 96.3%; compared with the same period last year, an increase of 12.38 10,000 tons, a year-on-year increase of 257.27%. After the year, the supply of Sunflower Oil is relatively loose, the demand is weak, and the price shows an apparent weak movement.
In March 2023, China’s Sunflower Oil importers were mainly from Russia, Ukraine, and Kazakhstan, according to China Customs. From the perspective of import data, Russia is the first source of imports, with 90,700 tons from Russia, accounting for 52.75% of the total imports; Ukraine ranked second, with 70,400 tons, accounting for 40.95% of the total imports. Imports from Kazakhstan are also gradually increasing, with an import volume of 10,000 tons, accounting for 5.83% of the total import volume.
Other sources: FINANCE SINA
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